I didn't realize that you had responded to my post -- I kept looking for a response and decided that my question was not of sufficient general interest for anyone to comment. Don't know how I missed yours.

To answer your question, DH is receiving full salary for the two-year period during which he is considered an "employee-consultant." Last year, he was able to contribute to his 401K. This year, he gets a letter telling him that "due to a change in IRS regulations," he can no longer contribute to his 401K.

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